30 Sep 2008

And then there are these other people... You hear or read what they have to say, you scratch your head and you ask yourself... ARE THEY FOR REAL? ARE THEY JUST PLAIN DUMB OR JUST PRETENDING TO BE DUMB, OR WHAT??Yesterday the stock market suffered its biggest one day drop in more than 20 years... (Not counting the Black Monday of 87, it was the worst one-day drop in 60 years... )The bears were devouring anything in their way... Nothing and no-one stood ground.... Fundamental analysis couldn't be applied to anything but wiping ones' own ass... No sector of the economy was spared of the massacre, and tech suffered a lot...Dan Frommer, from SAI, even posted some numbers showing how this was a MARKET meltdown (not that you needed any help to realise it of course...)

Akamai (AKAM) dropped $1.50, or 9.2%

Amazon (AMZN) dropped $7.35, or 10.4%

Apple (AAPL) dropped $22.98, or 17.9%, after two downgrades

Cisco (CSCO) dropped $2.03, or 8.5%

Dell (DELL) dropped $1.59, or 9.4%

eBay (EBAY) dropped $2.62, or 11.6%

Google (GOOG) dropped $50.04, or 11.6%, to $381 -- its first trip below $400 in two years

HP (HPQ) dropped $1.59, or 9.4%

IBM (IBM) dropped $4.96, or 4.2%

Intel (INTC) dropped $1.93, or 10.0%

Microsoft (MSFT) dropped $2.39, or 8.7%

Oracle (ORCL) dropped $1.85, or 9.0%

Yahoo (YHOO) dropped $2.04, or 10.8%

YET HENRY BLODGET SAT DOWN, FLIPPED-OPEN HIS LAPTOP, SCRATCHED HIS HEAD, AND TRIED TO CONVINCE THE WORLD THAT THE DROP ON GOOGLE'S STOCK HAPPENED BECAUSE OF STUFF LIKE:

current free cash flow...

valuation...

estimates...

lower-than-expected revenue growth...

non-sustainable upward course..

"Google's stock is finally getting to the level where there should be good downside valuation support. If the company's business really falls apart, the stock could drop below $300, but we don't see that happening. We do think the stock could drop below $350, though."

And he posted this on the day that the NASDAQ dropped almost 10%

Henry Blodget is not dumb. You can't do the stuff he does when you are dumb... no fucking way...